Global Trade
This term describes the difference between a country's total exports and total imports
What is trade balance?
This is the price of one currency expressed in terms of another currency.
What is an exchange rate?
This strategy involves selling products in foreign markets without establishing local operations.
What is exporting?
This term describes the unwritten rules and expectations that guide behavior in different cultures.
What are cultural norms?
This organization holds all member nations accountable to one another.
What is the United Nations (UN)?
These are taxes imposed on imported goods to protect domestic industries.
What are tariffs?
This currency was created when the European Union was formed.
What is the Euro?
This business arrangement allows a company to use another firm's business model and brand in exchange for fees. (McDonald's, Subway, Jimmy John's are examples)
What is a franchise?
This communication style relies heavily on context, relationships, and non-verbal cues rather than explicit words.
What is high-context communication?
This North American agreement eliminated most tariffs between the United States, Canada, and Mexico.
What is NAFTA or USMCA?
This agreement eliminates trade barriers between member countries while maintaining individual trade policies with non-members.
What is a trade bloc?
When they left the European Union, the UK revert to this primary currency?
What is the British Pound Sterling?
In international business, this partnership involves two or more companies from different countries sharing ownership and control.
When a company only offers the same products and processes no matter the country or region they operate in they practice this concept.
What is standardization?
This organization was created to help "referee" business competition between countries.
What is the WTO (the World Trade Organization)?
This economic theory suggests countries should specialize in producing goods where they have the lowest opportunity cost.
What is comparative advantage?
These two countries have the largest economies.
What are the US and China?
This strategy involves a company establishing its own operations and facilities in a foreign country.
What is direct investment?
This business practice involves adapting products, services, or marketing to fit local cultural preferences.
What is localization?
This entity is primarily focused on global financial stability, offering short-to-medium-term loans and policy advice to countries with balance of payments problems
What is the International Monetary Fund (IMF)?
This practice involves selling goods in foreign markets at prices below production cost or domestic market price.
What is dumping?
This risk arises from potential losses due to changes in exchange rates.
What is exchange rate risk?
This market entry method involves purchasing an existing company in the target country.
What is acquisition?
This cultural phenomenon occurs when individuals experience discomfort from encountering unfamiliar cultural practices.
What is culture shock?
This entity is focused on long-term economic development and poverty reduction, providing loans and grants for specific projects like infrastructure, health, and education.
What is the World Bank?